Connecticut 2026 Session Status: Enacted Bipartisan · 3 D · 2 R cosponsors

HB 5442 — AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR AND TAX AGREEMENTS RELATED TO CERTAIN CLASS I RENEWABLE ENERGY SOURCES.

Last action — SIGNED BY GOVERNOR

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 03, 2026. Enacted.

Signed by Governor Ned Lamont (Democratic) on June 04, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 76% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 5 sponsors

    5 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (3 D · 2 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill modifies property tax exemptions for certain renewable energy sources.

This legislation updates the property tax exemptions and tax agreements for specific Class I renewable energy sources. It aims to encourage the use and development of renewable energy by adjusting tax benefits.

What this means for you
  • Environment: This means increased support for renewable energy initiatives that aim to reduce environmental impact.

Bill Text

What changed in the latest version

263 added · 457 removed

Plain-language change summary

The updated version of Bill HB 5442 now clarifies the definitions and conditions for property tax exemptions related to renewable energy sources. It specifies that installations for private residential use or on farms must meet certain criteria, such as not exceeding estimated annual energy needs. This change is important because it aims to encourage the adoption of renewable energy technologies by ensuring that homeowners and small farms can benefit from tax relief, thereby promoting sustainability and reducing energy costs.

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House of Representatives File No.
House Bill No.
757 General Assembly February Session, 2026Reprint of File No.
5442 Public Act No.
666) House Bill No.
26-134 AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR AND TAX AGREEMENTS RELATED TO CERTAIN CLASS I RENEWABLE ENERGY SOURCES.
5442 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 1, 2026 AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR AND TAX AGREEMENTS RELATED TO CERTAIN CLASS I RENEWABLE ENERGY SOURCES.
(57) (A) (i) Any Class I renewable energy source, as defined in section 16-1, or hydropower facility described in subdivision (21) of subsection (a) of section 16-1, installed for the generation of electricity where such electricity is intended for private residential use or on a farm, as defined in subsection (q) of section 1-1, provided (I) such installation occurs on or after October 1, 2007, (II) the estimated annual production of such source or facility does not exceed the estimated annual load for the location where such source or facility is located, where such load and production are estimated as of the date of installation of the source or HB5442 / File No.
(57) (A) (i) Any Class I renewable energy source, as defined in section 16-1, or hydropower facility described in subdivision (21) of subsection (a) of section 16-1, installed for the generation of electricity where such electricity is intended for private residential use or on a farm, as defined in subsection (q) of section 1-1, provided (I) such installation occurs on or after October 1, 2007, (II) the estimated annual production of such source or facility does not exceed the estimated annual load for the location where such source or facility is located, where such load and production are estimated as of the date of installation of the source or facility as indicated in the written application filed pursuant to subparagraph [(G)] (F) of this subdivision, and (III) such installation is for a single family dwelling, a multifamily dwelling consisting of two to four units or a farm;
757 HB5442 File No.
757 facility as indicated in the written application filed pursuant to subparagraph [(G)] (F) of this subdivision, and (III) such installation is for a single family dwelling, a multifamily dwelling consisting of two to four units or a farm;
In the case of clause (i) of this subparagraph, the utilization of or participation in any net metering or tariff policy or program implemented by the state or ownership of such source or facility by a party other than the owner of the real property uponwhich such source or facility is installed shall not disqualify such source or facility from exemption pursuant to this section.
In the case of House Bill No.
5442 clause (i) of this subparagraph, the utilization of or participation in any net metering or tariff policy or program implemented by the state or ownership of such source or facility by a party other than the owner of the real property uponwhich such source or facility is installed shall not disqualify such source or facility from exemption pursuant to this section.
(C) For assessment years commencing on and after October 1, 2013, any municipality may, upon approval by its legislative body or in any town in which the legislative body is a town meeting, by the board of selectmen, abate up to one hundred per cent of property tax for any Class I renewable energy source, as defined in section 16-1, hydropower facility described in subdivision (21) of subsection (a) of section 16-1, or solar thermal or geothermal renewable energy source, installed for HB5442 / File No.
(C) For assessment years commencing on and after October 1, 2013, any municipality may, upon approval by its legislative body or in any town in which the legislative body is a town meeting, by the board of selectmen, abate up to one hundred per cent of property tax for any Class I renewable energy source, as defined in section 16-1, hydropower facility described in subdivision (21) of subsection (a) of section 16-1, or solar thermal or geothermal renewable energy source, installed for generation or displacement of energy, provided (i) such installation occurs between January 1, 2010, and December 31, 2013, (ii) such Public Act No.
757 HB5442 File No.
26-134 2 of 9 House Bill No.
757 generation or displacement of energy, provided (i) such installation occurs between January 1, 2010, and December 31, 2013, (ii) such installation is for commercial or industrial purposes, (iii) the nameplate capacity of such source or facility does not exceed the load for the location where such generation or displacement is located, and (iv) such source or facility is not located in a municipality described in subparagraph (B) of this subdivision;
5442 installation is for commercial or industrial purposes, (iii) the nameplate capacity of such source or facility does not exceed the load for the location where such generation or displacement is located, and (iv) such source or facility is not located in a municipality described in subparagraph (B) of this subdivision;
[(E) For assessment years commencing on and after October 1, 2025, the exemption provided for under subparagraph (D)(i) of this subdivision shall apply only to equipment and devices that have the primary purpose of generating electricity andshall not apply to any real property onwhichsuchequipment anddevicesare locatedor installed;] [(F)] (E) For assessment years commencing on and after October 1, 2025, any Class I renewable energy source consisting of equipment and devices that have the primary purpose of collecting solar energy and generatingelectricity by photovoltaiceffect,for whichtheownerofsuch HB5442 / File No.
[(E) For assessment years commencing on and after October 1, 2025, the exemption provided for under subparagraph (D)(i) of this subdivision shall apply only to equipment and devices that have the primary purpose of generating electricity andshall not apply to any real property on whichsuchequipment anddevicesare locatedor installed;] [(F)] (E) For assessment years commencing on and after October 1, 2025, any Class I renewable energy source consisting of equipment and devices that have the primary purpose of collecting solar energy and generatingelectricity by photovoltaiceffect,for whichtheownerofsuch Public Act No.
757 HB5442 File No.
26-134 3 of 9 House Bill No.
757 equipment and devices receives, on or after July 1, 2025, permission to operate from an electric distribution company, as defined in section 16- 1, or a municipal utility furnishing electricity.
5442 equipment and devices receives, on or after July 1, 2025, permission to operate from an electric distribution company, as defined in section 16- 1, or a municipal utility furnishing electricity.
Such application shall not be required for any assessment year following that for which the initial application is filed, provided if such hydropower facility, Class I renewable energy source, solar thermal or geothermal renewable energy source or passive or active solar water or space heating system or geothermal energy resource is altered in a manner that would require a building permit, such alteration shall be deemed a waiver of the right to such exemption until a new application, applicable with respect to such altered source, is filed and the right to such exemption is established as required HB5442 / File No.
Such application shall not be required for any assessment year following that for which the initial application is filed, provided if such hydropower facility, Class I renewable energy source, solar thermal or geothermal renewable energy source or passive or active solar water or space heating system or geothermal energy resource is altered in a manner that would require a building permit, such alteration shall be deemed a waiver of the right to such exemption Public Act No.
757 HB5442 File No.
26-134 4 of 9 House Bill No.
757 initially.
5442 until a new application, applicable with respect to such altered source, is filed and the right to such exemption is established as required initially.
(1) "Solar photovoltaic system" means equipment and devices (A) that have the primary purpose of collecting solar energy and generating electricity by photovoltaic effect, (B) that have a nameplate capacity greater than one megawatt of electricity and such nameplate capacity exceeds the load for the location where such generation is located, and (C) for which the owner of such equipment and devices receives, on or after July 1, [2026] 2025, permission to operate from an electric distribution company, as defined in section 16-1, or a municipal utility furnishing electricity;
(1) "Solar photovoltaic system" means equipment and devices (A) that have the primary purpose of collecting solar energy and generating electricity by photovoltaic effect, (B) that have a nameplate capacity greater than one megawatt of electricity and such nameplate capacity Public Act No.
HB5442 / File No.
26-134 5 of 9 House Bill No.
757 HB5442 File No.
5442 exceeds the load for the location where such generation is located, and (C) for which the owner of such equipment and devices receives, on or after July 1, [2026] 2025, permission to operate from an electric distribution company, as defined in section 16-1, or a municipal utility furnishing electricity;
757 (2) "Municipality" means any town, city, consolidated town and city or consolidated town and borough;
(2) "Municipality" means any town, city, consolidated town and city or consolidated town and borough;
If a solar photovoltaic system has multiple owners, each owner shall be jointly and severally liable for the tax owed pursuant to this section.
If a solar photovoltaic system has multiple owners, each owner shall be Public Act No.
(2) [Each] On and after July 1, 2026, each person that owns a solar photovoltaic system in the state that receives [, on or after July 1, 2026,] permission to operate from an electric distribution company or a municipal utility furnishing electricity shall notify, not later than seven days after the date of such receipt, the department of finance of each municipality in which the system or any part thereof is located or, if the HB5442 / File No.
26-134 6 of 9 House Bill No.
757 HB5442 File No.
5442 jointly and severally liable for the tax owed pursuant to this section.
757 municipality does not have a department of finance, the tax collector for such municipality, of the effective date of such permission to operate, provided, for any solar photovoltaic system that receives such permission to operate on or after July 1, 2025, but before July 1, 2026, shall provide such notification not later than July 10, 2026.
(2) [Each] On and after July 1, 2026, each person that owns a solar photovoltaic system in the state that receives [, on or after July 1, 2026,] permission to operate from an electric distribution company or a municipal utility furnishing electricity shall notify, not later than seven days after the date of such receipt, the department of finance of each municipality in which the system or any part thereof is located or, if the municipality does not have a department of finance, the tax collector for such municipality, of the effective date of such permission to operate, provided, for any solar photovoltaic system that receives such permission to operate on or after July 1, 2025, but before July 1, 2026, shall provide such notification not later than July 10, 2026.
(d) The revenues generated by the tax imposed under this section shall become part of the general revenue of the municipality in which the tax is paid.
Public Act No.
26-134 7 of 9 House Bill No.
5442 (d) The revenues generated by the tax imposed under this section shall become part of the general revenue of the municipality in which the tax is paid.
(f)Whenever thetax imposedunder thissectionisnot paid whendue HB5442 / File No.
(f)Whenever thetax imposedunder thissectionisnot paid whendue to the department of finance or tax collector, as applicable, in a municipality, interest at the rate of one and one-half per cent per month or fraction thereof shall accrue on such tax from the due date of such tax until the date of payment.
757 HB5442 File No.
757 to the department of finance or tax collector, as applicable, in a municipality, interest at the rate of one and one-half per cent per month or fraction thereof shall accrue on such tax from the due date of such tax until the date of payment.
(B)The termsof such agreement shallapply inlieuofthetax imposed under this section, including any agreement pertaining to the tax imposed under chapter 203 entered into prior to July 1, 2025, but for which such owner receives permission to operate, as described under subdivision (1) of subsection (a) of this section, on or after July 1, 2025.
(B)The termsof such agreement shallapply inlieuofthetax imposed under this section, including any agreement pertaining to the tax Public Act No.
26-134 8 of 9 House Bill No.
5442 imposed under chapter 203 entered into prior to July 1, 2025, but for which such owner receives permission to operate, as described under subdivision (1) of subsection (a) of this section, on or after July 1, 2025.
(i) For purposes of calculating the nameplate capacity of a solar photovoltaic system, the following shall be deemed to be part of the same solar photovoltaicsystem:(1)Allequipment anddevicesthathave theprimarypurposeofcollectingsolarenergyandgeneratingelectricity HB5442 / File No.
(i) For purposes of calculating the nameplate capacity of a solar photovoltaic system, the following shall be deemed to be part of the same solar photovoltaicsystem:(1)Allequipment anddevicesthathave theprimarypurposeofcollectingsolarenergyandgeneratingelectricity by photovoltaic effect that are located on the same parcel;
757 HB5442 File No.
757 by photovoltaic effect that are located on the same parcel;
This act shall take effect as follows and shall amend the following sections:
Governor's Action:
Section 1 from passage 12-81(57) Sec.
Approved June 4, 2026 Public Act No.
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2 from passage New section July 1, 2026 Sec.
26-134 9 of 9
3 12-121dd HB5442 / File No.
757 9 HB5442 File No.
757 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
None Municipal Impact:
Municipalities Effect FY 27 $ FY 28 $ Various Municipalities Grand List See Below See Below Expansion Explanation The bill (1) limits a solar property tax exemption to certain solar facilities that are permitted to operate within certain dates, and (2) permits municipalities to amend their 2025 grand list and issue certificates of correction to reflect this change, and (3) eliminates an exemption for any device with the primary purpose of generating electricity.
This results in a grand list increase to municipalities beginning in FY 27 that is dependent on what property would have or had already qualified for the exemption.
1 House "A" eliminates the original bill and its associated fiscal impact, and results in the impact described above.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to amount of qualify property.
A grand list increase results in a revenue gain to municipalities given a constant mill rate.
HB5442 / File No.
757 HB5442 File No.
757 OLR Bill Analysis HB 5442 (as amended by House “A”)* AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR AND TAX AGREEMENTS RELATED TO CERTAIN CLASS I RENEWABLE ENERGY SOURCES.
SUMMARY This bill makes changes to the municipal uniform solar capacity tax created by PA 25-173, § 57, and the property tax exemption provisions in PA 25-173, § 58.
Principally, the bill:
1.
expands the scope of solar photovoltaic systems subject to the uniform solar capacity tax to include those that are permitted to operate on or after July 1, 2025, but before July 1, 2026, which is a year earlier than current law, and makes these systems responsible for one less year of the tax than those permitted on or after July 1, 2026;
2.
limits the solar-related property tax exemption created by PA 25- to facilities that are permitted to operate on or after July 1, 2025;
and 3.
rolls back a property tax exemption for certain Class I renewable energy sources to how it existed before PA 25-173.
The bill also makes technical and conforming changes.
*House Amendment “A” replaces the underlying bill, which addressed the tax and exemption created by PA 25-173.
EFFECTIVE DATE:
Upon passage, except the municipal uniform solar capacity tax provisions are effective July 1, 2026.
HB5442 / File No.
757 11 HB5442 File No.
757 § 3 — MUNICIPAL UNIFORM SOLAR CAPACITY TAX By law, the municipal uniform solar capacity tax applies to owners of “solar photovoltaic systems,” which are equipment and devices:
1.
that primarily collect solar energy and generate electricity by photovoltaic effect, 2.
that have a nameplate capacity over one megawatt (MW) that exceeds the load for the location where the equipment and devices are located (nameplate capacity generally refers to a facility’s maximum output under specific conditions designated by the manufacturer), and 3.
for which the owner receives permission to operate from an electric distribution company or a municipal electric utility by a certain date.
Under current law, thetax applies to these systems that are permitted on or after July 1, 2026.
The bill expands this to permitted systems on or after July 1, 2025.
For each municipality in which a solar photovoltaic system (or any part of it) is located, current law requires the system’s owners to notify themunicipality’sfinance department,or,ifnone,themunicipality’stax collector of the effective date of their permission to operate the system.
They must do so within seven days after receiving permission.
The bill limits these requirements to systems permitted on or after July 1, 2026.
For systems permitted on or after July 1, 2025, but before July 1, 2026, the bill requires their owners to notify the same entities but by July 10, 2026.
Existinglawestablishesa“uniformsolarcapacitytaxyear,”fromJuly to June 30, as an accounting period to calculate the tax.
For any system that receives permission to operate in uniform solar capacity tax years starting on or after July 1, 2026, the tax must be paid annually for a period of 20 uniform solar capacity tax years at a rate of $10,000 per MW of nameplate capacity, including any fractional portion.
The bill applies HB5442 / File No.
757 12 HB5442 File No.
757 this rate to systems that receive their permission on or after July 1, 2025, but before July 1, 2026, but only requires they pay the tax for 19 uniform solar capacity tax years.
Existing law allows municipalities to enter into agreements with system owners to stabilize or freeze the tax.
The bill specifies that the terms of these agreements apply instead of the tax, even if they entered the agreement before July 1, 2025.
By law, the tax does not apply to systems located on the following:
1.
state-owned land;
2.
“brownfields” (abandoned or underutilized property where redevelopment, reuse, or expansion has not occurred due to the presence or potential presence of pollution in the buildings, soil, or groundwater that requires investigation or remediation before or along with the property’s redevelopment, reuse, or expansion);
3.
landfills;
4.
residential, commercial, or industrial rooftops;
or 5.
“solar canopies” (outdoor, shade-providing structures, such as carports, that host solar photovoltaic panels above a parking or driving area, pedestrian walkway, courtyard, canal, or other used surface and are installed in a way that maintains the function of the underneath area).
Additionally, the tax also does not apply to systems that are part of a microgrid serving a critical facility.
By law, a “microgrid” is a group of interconnected electricity users and generators that (1) is within clearly defined boundaries and acts as a single controllable entity with respect to the larger grid and (2) can operate as part of the grid or independent of it.
A “critical facility” includes:
1.
hospitals, HB5442 / File No.
757 13 HB5442 File No.
757 2.
police and fire stations, 3.
water and sewage treatment plants, 4.
public shelters, 5.
correctional facilities, 6.
certain television and radio production and transmission facilities, 7.
commercial areas, 8.
municipal centers identified by the municipality’s chief elected official, and 9.
any other facility or area identified by the Department of Energy and Environmental Protection.
§§ 1 & 2 — PROPERTY TAX EXEMPTIONS FOR CLASS I RENEWABLE ENERGY SOURCES PA 25-173, § 58, created, starting with the 2025 assessment year, a property tax exemption for Class I renewable energy sources that consist of equipment and devices that primarily collect solar energy and generate energy by photovoltaic effect.
The bill limits this exemption to equipment and devices whose owners receive, on or after July 1, 2025, permission to operate from an electric distribution company or municipal electric utility.
Existing law, unchanged by the bill, also limits this exemption by applying it only to equipment and devices with the primary purpose of generating electricity and not to any real property where the equipment or devices are located or installed.
PA 25-173, § 58, applied the same limitation regarding real property starting with the same assessment year to an existing property tax exemption for Class I renewable energy sources (other than nuclear power generating facilities) (1) installed on or after January 1, 2014;
(2) for commercial or industrial purposes;
and (3) with a nameplate capacity that does not exceed the location’s load or, if the facility is HB5442 / File No.
757 14 HB5442 File No.
757 participating in virtual net metering, the aggregated load of its beneficial accounts.
The bill eliminates the limitation for this exemption and reverts it to prior law, which did not explicitly exclude the real property.
The bill makes a corresponding change requiring municipalities to amend their 2025 grand lists and issue certificates of correction to reflect the bill’s changes to the exemption created by PA 25-173.
COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Yea 54 Nay 0 (03/30/2026) HB5442 / File No.
757 15
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Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 26-134

  5. IN CONCURRENCE

  6. SEN. PASSED, HO. AMEND. SCH. A

  7. SEN. ADOPTED HO. AMEND. SCH. A

  8. FILE NO. 757

  9. SENATE CALENDAR NUMBER 515

  10. FAV. RPT., TAB. FOR CAL., SEN.

  11. IMMEDIATE TRANSMITTAL TO THE SENATE

  12. HOUSE PASSED, HOUSE AMEND. SCH. A

  13. HOUSE ADOPTED HOUSE AMEND. SCH. A

  14. FILE NO. 666

  15. HOUSE CALENDAR NUMBER 441

  16. FAV. RPT., TABLED FOR HOUSE CALENDAR

  17. RPTD. OUT OF LCO

  18. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/15/26

  19. FILED WITH LCO

  20. Joint Favorable

  21. PUBLIC HEARING 0311

  22. REF. TO JOINT COMM. ON Finance, Revenue and Bonding

Sponsors

Sponsorship breakdown

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5 sponsors · 0 co-sponsors · 182 not signed on

Sponsors (5)

Co-sponsors (0)

None.

Not signed on (182)

182 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 5442?
HB 5442 is sponsored by Steven Winter (Democratic), Dave W. Yaccarino (Republican), Nick Gauthier (Democratic), Aundre Bumgardner (Democratic), and Greg S. Howard (Republican).
What is the current status of HB 5442?
This bill has been enacted into law. Introduced March 03, 2026. Enacted.
Where can I track HB 5442?
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